Shipping giant Maersk’s ocean segment reported first quarter 2023 revenues of $9.9bn, a decrease of $5.7bn compared to the first quarter 2022 as demand, volumes and freight rates fell.
However, the group says it is “in line with expectations” and Q1 is “expected to be the strongest quarter of the year”.
“We delivered a solid financial performance in a challenging market with lower demand caused by a continued destocking. Visibility remains low for the remainder of the year and moving through this market normalisation, we remain focused on proactively managing costs. As we adjust to a radically changed business environment, we continue to support our customers in addressing their supply chain challenges. We are pleased to note that customers continue to value the integrated logistics solutions and close partnership we provide,” said Vincent Clerc, CEO of Maersk.
In Logistics & Services, revenue grew 21% to USD 3.5bn driven by the consolidation of acquisitions. Meanwhile, revenue in Terminals decreased to USD 876m from USD 1.1bn, but strong cost control contributed to continued solid financial performance in Terminals.
According to Maersk, guidance for 2023 remains unchanged and is still based on the expectation that inventory correction will be complete by the end of H1, which will lead to a more balanced demand environment. The company also expects that 2023 global GDP growth remains muted and the global ocean container market will grow in a range of -2.5% to +0.5%. Ocean expects to grow in line with market.